Bitcoin Price Soaring in Countries with High Inflation
A crypto analyst, Miles Deutscher, has shared data revealing that the price of Bitcoin has reached new all-time highs in countries such as Turkey, Argentina, and Nigeria. These countries are currently experiencing high inflationary pressures, causing their fiat currencies to devalue rapidly. Deutscher displayed price charts in a tweet, showing the value of one Bitcoin against the currencies of these countries. For example, at one point on October 26, a single Bitcoin was equivalent to 12,172,353.50 ARS in Argentina.
High Inflation Rates in Inflationary Currencies
According to data from the International Monetary Fund (IMF), these countries have been facing significant inflation rates. Argentina has a rate of 136.7%, Turkey at 64%, and Nigeria at 30.6%. Other countries like Zimbabwe and Venezuela have even higher inflation rates at 396.2% and 250% respectively.
Bitcoin Becoming a Reliable Store of Value
The price of Bitcoin in these countries has become a reliable store of value amidst the devaluation of their respective fiat currencies. Despite the unstable economic conditions, many people in Nigeria and Argentina are adopting cryptocurrencies as an alternative form of currency.
Bitcoin Dominance Continues to Grow
In recent days, Bitcoin has experienced price spikes and drops following rumors about the approval of a Spot Bitcoin ETF and the listing of BlackRock’s iShares Bitcoin ETF on DTCC. The potential acceptance of Bitcoin ETFs and the upcoming Bitcoin halving event in 2024 have contributed to widespread optimism surrounding the cryptocurrency.
Data from TradingView shows that Bitcoin’s dominance over the crypto market has been increasing. It started October with a dominance of 49.78% and reached as high as 54.47% before settling at 54.04% currently.
Current Bitcoin Price and Performance
At the time of writing, the price of Bitcoin is $34,156, showing a 1.59% loss in the last 24 hours. However, it has still gained 16.62% over the past week.
Hot Take: Bitcoin Thriving in Inflationary Economies
The soaring Bitcoin prices in countries with high inflation demonstrate the growing recognition of cryptocurrencies as a reliable store of value. As fiat currencies devalue rapidly, people are turning to Bitcoin as an alternative investment and means of preserving wealth. This trend highlights the potential for cryptocurrencies to play a significant role in economies facing economic instability and inflationary pressures.
By
By
By
By